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Assuming the Use of the Indirect Method to Prepare the Statement

Question 147

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Assuming the use of the indirect method to prepare the statement of cash flows,indicate whether each of the following items would be added to net income,subtracted from net income,or not included in the operating activities section.Use the letters "A" for added,"S" for subtracted,or "N" for not included in the operating activities section.
 Answers  a.  Example: Increase In Accounts Receivable  S  b.  Decrease in Accounts Payable  c.  Decrease in Bond Payable  d.  Decrease in Inventory  e.  Increase in Common Stock  f.  Decrease in Accounts Receivable  g.  Depreciation Expense  h.  Decrease in Equipment  i.  Decrease in Prepaid Rent \begin{array} { | l | l | c | } \hline & & \text { Answers } \\\hline \text { a. } & \text { Example: Increase In Accounts Receivable } & \text { S } \\\hline \text { b. } & \text { Decrease in Accounts Payable } & \\\hline \text { c. } & \text { Decrease in Bond Payable } & \\\hline \text { d. } & \text { Decrease in Inventory } & \\\hline \text { e. } & \text { Increase in Common Stock } & \\\hline \text { f. } & \text { Decrease in Accounts Receivable } & \\\hline \text { g. } & \text { Depreciation Expense } & \\\hline \text { h. } & \text { Decrease in Equipment } & \\\hline \text { i. } & \text { Decrease in Prepaid Rent } & \\\hline\end{array}

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